Consumers Want Simpler, Omnichannel Shopping and Payment Experiences, Fiserv Says

From ordering and payments to reward redemption consumers want a simpler shopping experience, according to research from Fiserv Inc. To meet demand, merchants and restaurants should provide more omnichannel experiences, retailer apps, and embedded payment options that add value.

Buy online, pick up in store (BOPIS) is one way merchants can connect consumer experiences across devices and channels to meet consumers when and where they want to engage. Some 59% of consumers said they used BOPIS in the preceding month, up 2% from 2022, according to Fiserv’s 2023 Carat Insights report. Fiserv surveyed 2,200 consumers ages 18 to 70+ in the United States during the spring of 2023 for the report.

BOPIS usage is most popular at restaurants, with 59% of respondents saying they have used the service at a restaurant, followed by retailers (47%) and grocery stores (47%). In addition, 50% of respondents said they ordered ahead on a retailer app in the past month, an increase of 3% from 2022.

BOPIS is also extremely popular among Gen Zers and Millennials with 85% of respondents in both demographics saying they use BOPIS and 66% and 69%, respectively, saying they ordered ahead on a retailer app in the past month.

Embedded payments and loyalty options within retail apps are other hot button issues with consumers. Some 46% of consumers rank the ability to pay within the app as a key factor in choosing and using the app, while 44% cited integrated loyalty programs as a key factor. Respondents could cite more than one reason.

Other factors influencing selection and use of an app include easy to use (56%) and easy to sign up (47%).  When it comes to loyalty, 43% say access to exclusive app-only discounts is important and 39% say personalized rewards are important.

“Businesses have tremendous opportunity to deepen relationships with customers by enabling omnichannel experiences that streamline the purchasing process,” Casey Klyszeiko, head of Carat and Global eCommerce for Fiserv says in a statement.

Debit remains the most popular form of payment among consumers with 39% of respondents saying prefer to pay with debit for in-store purchases and 38% saying they use it for online purchases. In comparison, 26% of respondents say they prefer to use credit for in-store purchases and 31% say they prefer to pay with credit for online purchases. Debit is especially popular among Gen Zers with 79% saying they paid for an in-store purchase the past month with a debit card.

Pay by bank is another payment option gaining traction with consumers. Based on its research, Fiserv predicts that as consumers discover the benefits of pay by bank, which include user friendly, omnichannel capabilities, loyalty program integration, and built-in security reduce decline rates, more will gravitate to the payment method. The most compelling reasons cited by consumers for using pay by bank applications are consumer protections (40%), no debt accrued (40%), and easy to enroll (38%). Again, consumers could cite more than one reason for using pay by bank.

The biggest barriers to holding back adoption of pay by banks is that 39% of consumers are not aware of the payment option, 23% say they don’t understand it and 17% fear a criminal will use the app to drain their bank account.